I got the CITI Expedia card last year when they were giving out the 60,000 Expedia point bonus. I got hit with the annual fee this morning when the statement generated which annoyed me since it then reported a balance to the bureau. I was really checking to see if the AZEO thing is really a thing. After reading a few posts, I was under the impression that I was going to have the option to convert the card to any CITI card (was really hoping for the Dividend card) or transfer the limit to a different CITI card. I tried the chat function first and failed on both requests and was only offered to convert the card to the non-annual fee Expedia card, which is basically worthless. I then called them and spoke to three overly-nice representatives. The conversation seemed really scripted, or they're really nice and took mega phone etiquette classes 
All three gave me the same response as the chat representative. I ended up converting the card to the normal Expedia card which will never be used for the sake of keeping the card open. From my experience this morning, here are key takeaways:
- Citi seems to be following other card companies to where the card can only be converted to a card with a similar reward structure
- Will no longer transfer limits between cards, or this may be exclusive to the Expedia card and other co-branded cards
- They don't like me and did not offer any retention initiatives to waive the annual fee on a card that I haven't used in over a year
A few things. The Dividend card isn't an option for PC's. So, we can rule that piece out.
Expedia CCs tend to have their quirks with PCs, unlike AAdvantage or AT&T products, for example. Your first bullet point is speculative at best since there have been plenty of successful PCs out of different products, including the Simplicity, which had been PC-locked for years. It boils down to your specific account/profile being eligible.
So, as far as AZEO goes, that can correct itself with the AF refund given the PC to the no-AF version or you forcing a zero-balance statement on the next cycle.
Limits are not consolidated or reallocated. In order to accomplish this, a call would need to be escalated. It's basically a CL reduction/increase swap between 2 accounts, (as Citi processes them) with a HP. And, the entire CL cannot be "allocated" in some instances. Some have done it via SP, but it's rare.
The third bullet point speaks for itself. If you haven't used the card, there isn't any incentive for Citi to throw any Expedia promotional points offer, let alone waive the AF Nothing to do with not 'liking you'.